Sumitomo Corp. is launching a business focused on reusing and recycling IT equipment in response to the global expansion of data centers and other factors, according to a company official.
In June, the company invested several billion yen in GreenTek Solutions LLC, a U.S.-based company engaged in the recycling of IT equipment such as servers, making it an equity-method affiliate.
The company plans to expand its operations primarily in the United States, as well as in Japan, Europe and other areas.
IT equipment is rapidly becoming more sophisticated, leading to shorter replacement cycles. Consequently, the server refurbishment business is growing in the United States.
Known as ITAD (IT Asset Disposition -- the proper disposal of IT equipment), this sector has seen hundreds of companies enter the market in the United States, where data center construction is surging against the backdrop of the spread of artificial intelligence; the market size is estimated to have reached several billion dollars.
GreenTek was established in 2012. To date, it has processed more than 1.2 million units of IT equipment, doing business with major IT manufacturers in the United States.
One reason Sumitomo Corp. took an interest in GreenTek is that the company complies with international certification systems for the disposal of IT equipment. Known as R2v3 (Responsible Recycling Version 3), this is an international certification standard for the disposal of IT assets and the recycling of electronic equipment.
By being certified by private certification bodies, businesses are proven to be meeting strict security standards.
Furthermore, R2v3 certification is now mandatory for businesses seeking to meet security standards required by the U.S. Defense Department.
Yuki Takamatsu, assistant manager of Sumitomo Corp.'s Leasing SBU, which is in charge of the reusing and recycling business, said, "Going forward, we aim to grow this into a business worth tens of billions of yen with a view toward global expansion beyond the U.S. market to include Japan, Europe and Asia."
----
This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
YDN-M0000217097-1
(END) Dow Jones Newswires
July 14, 2026 06:33 ET (10:33 GMT)
Copyright (c) 2026 The Yomiuri Shimbun
Comments